What is works contract and how to make agreement for it?

Learn about works contracts, including their definition and how to create an agreement for one. Understand the roles of the contractee and contractor, the terms of work, and legal responsibilities involved.

Works Contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration, or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of the such contract.

Agreement of Works Contract

Works contract is executed amongst the following persons.

The contractor agrees to perform the following services at the following place of work and in consideration of the services to be performed by the contractor, the contractee agrees to pay the contractor at the following rates.

From now on, this agreement of works contract is referred to as the agreement and the contractee and the contractor are jointly referred to as the persons. In the expression of the terms in the agreement, the person shall mean and include their legal heirs, successors, executors, administrators, assigns, representatives, etc.

Persons agree as follows:

1. The work is to be performed in accordance with the contractee’s plans and specifications and the type of work prescribed in the part of this agreement.

2. The work to be performed shall be commenced and completed by the following dates.

For the safety and protection of the persons engaged in the work, the work shall be performed between the hours of 09:00 am to 06:00 pm, Monday to Saturday.

3. For the administration and management of the work, water, electricity, utilities, transportation, machinery, labour, spares and consumables, and other facilities shall be arranged either by the contractee or by the contractor, as mutually agreed amongst them.

4. The contractee or representatives of the contractee shall be entitled to inspect the progress of the work and materials used for it and shall be entitled to point out to the contractor any defects in the work. If the contractor shall be satisfied with the objections raised, the contractor shall remove such defective materials from the work.

5. The contractor shall be responsible for all construction means, methods, techniques, sequences, procedures, and safety precautions or programs, initiating, maintaining, supervising, coordinating, and performing all of the work and providing all reasonable protection to prevent damage, injury, or loss to all employees, sub-contractors and all other persons connected to the work and all property at work. Further, the contractor shall comply with all applicable laws, ordinances, rules, regulations, notifications, circulars, and orders of government. Further, the contractor shall be responsible for the acts and omissions of all contractor’s employees, sub-contractors, and all other persons performing any of the work under this agreement with the contractor.

6. If the contractor has any claim for additional compensation or other damages against the contractee, the contractor shall give the contractee written notice of such claim within ten (10) days. If the contractor fails to give such notice, the claim shall be deemed waived and forever discharged.

7. If the Contractor is delayed at any time during the progress of the work, the contractor shall submit any claim for an extension of time to the contractee, in writing, within ten (10) days after the commencement of the delay. The written claim for extension of time shall state the number of days claimed and the reason for the delay.

8. This agreement is made on the following stamp paper.

Persons have read and understood this agreement and hereby solemnly affirm and declare that the information given herein above is true and correct and agreed to acknowledge the same without any pressure from any side and provide the signatures. 

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